Dividend Aristocrat stocks are those that have increased their dividend payouts for 25 consecutive years or more. They are valued highly among investors and are essential for dividend portfolios. Their track record of hiking dividend payouts makes it unlikely that these companies will cut their dividends anytime soon.
Key Points
-
The first stock is the world’s largest company by revenue, one that is still managing to grow better than its competitors.
-
The second stock is an evergreen company that will stick around for as long as investors use popular stock market benchmarks.
-
The third pick is a cash machine that is unlikely to disappoint you even in a recession.
-
Are you ahead, or behind on retirement? SmartAsset’s free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don’t waste another minute; get started by clicking here.(Sponsor)
Three recessions have happened in the past 25 years, and if a company has hiked its dividend payouts through them, they’re unlikely to cut payouts during the next one.
Here are three Dividend Aristocrat stocks that Wall Street analysts love, including the number of bullish analysts covering the stock. Stocks that receive more positive coverage from analysts generally trade at a higher premium. They also tend to be steadier names with more established businesses.
Walmart (WMT)
Walmart (NYSE:WMT) has been one of the biggest winners in the past few years, and unlike Target (NYSE:TGT), the outperformance is still ongoing. WMT stock is up nearly 10% year-to-date and 42% in the past year. No other big retail stock has performed as well as it has over the past year and a half.
This is mainly due to the rapid e-commerce growth Walmart has seen recently. Global e-commerce sales grew 22%. Operating income grew 4.3% and analysts see more growth with better margins in the future as retail companies aggressively automotive supply chains and stores.
On top of those e-commerce results, Walmart Connect (the advertising platform) saw its revenue grow 50%. Membership income grew 14.8%.
Many retail companies are struggling in the current environment and have significantly underperformed in the stock market. Walmart is continuing to grow, so Wall Street sees it as a standout.
The outlook is also solid, with Walmart expecting Q2 net sales to increase 3.5% to 4.5%. For the whole fiscal year, it sees 3% to 4% sales growth. Operating income is expected to grow 3.5% to 5.5%.
Out of 32 analyst ratings, 30 have Buy ratings, and 2 have Hold ratings. The consensus price target of $106.67 implies 7.76% upside potential. WMT stock comes with a 0.95% dividend yield, increased for 53 consecutive years.
S&P Global (SPGI)
S&P Global (NYSE:SPGI) is a cornerstone of the global financial system and has been one of the most consistent and stable names historically. It manages and publishes both the S&P 500 and the Dow Jones Industrial Average benchmarks. Operating these key benchmarks alone makes it a Wall Street linchpin. S&P Global is also among the “Big 3” credit rating agencies.
SPGI stock is up 16% and is poised to gain as long as the broader market does. Revenue in Q1 grew 8% year-over-year, and adjusted operating profit increased 10% year-over-year. For all of 2025, it sees 4% to 6% revenue growth, with an adjusted operating profit margin of 48.5% to 49.5%.
SPGI is a great pick if you want to buy and hold a Steady Eddie stock for the long run. The dividend yield is a modest 0.73%, but the payout ratio of 23% leaves room for significant increases down the line. S&P Global has also done routine buybacks, and the shareholder yield is at 2.92%. Dividends have been increased for 53 consecutive years.
Out of 16 analysts, 15 have a Buy rating on the stock, and only one analyst has a Hold rating. The consensus price target implies 12.5% upside.
Coca-Cola (KO)
Coca-Cola (NYSE:KO) is an essential portfolio holding for many investors. The company has a very long history, stretching back to the 1800s. Since then, it has become a household name in the remotest places of the world with solid footing.
Many people have developed a habit of drinking soda every day, so it is considered a staple. The broader consumer staples sector also tends to perform in all economic conditions.
Last year, Coca-Cola returned $8.4 billion in dividends. Since 2010, $93.1 billion has been paid to investors in dividends. It also approved its 63rd consecutive annual dividend increase in February of this year. KO stock now has a forward dividend yield of 2.87%.
There’s no indication that Coca-Cola will stop being a cash machine anytime soon. It has tremendous staying power and is likely to remain a household name in the next 50 or even 100 years.
Out of 18 analysts, 17 tag it a Buy and only one has a Hold rating. The consensus price target of $76.27 implies 7.52% upside potential.
The post 3 Dividend Aristocrat Stocks That Wall Street Analysts Love the Most appeared first on 24/7 Wall St..
Click this link for the original source of this article.
Author: Omor Ibne Ehsan
This content is courtesy of, and owned and copyrighted by, https://247wallst.com and its author. This content is made available by use of the public RSS feed offered by the host site and is used for educational purposes only. If you are the author or represent the host site and would like this content removed now and in the future, please contact USSANews.com using the email address in the Contact page found in the website menu.